In 2018, paint and coating manufacturers were putting digital technology to use in only a limited number of digital domains. Since then, the use of digital technology by these coatings companies has accelerated, and today, all leading formulators now have digital initiatives across multiple domains. A recent analysis by Frost & Sullivan has predicted that new digital business models such as data monetization and coatings-as-a-service will completely transform the way the paints and coatings industry operates in the next 10 years.

"In an industry as highly competitive as paints and coatings, product innovation is an important area of differentiation," said Brian Balmer, Industry Director, Chemicals, Materials and Nutrition at Frost & Sullivan. "Digital transformation will significantly enhance innovation in this sector, enabling manufacturers to deliver much more than just a tin of paint to customers in the near future."

Frost & Sullivan's latest research, Global Digital Transformation in Paints and Coatings, 2019, tracks the digital transformation of the global paints and coatings industry and seeks to identify future opportunities for further use of this technology. The report also explores the technologies enabling this digital transformation, the current activity among coating formulators and raw material suppliers in the various digital domains, and future scenarios for coatings in an increasingly digital world.

The role of digital leadership, especially chief digital officers (CDO), is poised to explode in 2020, addressing the lack of top-level digital strategy management that remains a challenge for the paints and coatings industry to date. The proper adoption of digital concepts will be disruptive for the industry, and it requires a different way of thinking. With a CDO at the helm, companies can realize their digital transformation goals quickly and effectively.

"The coatings industry is clearly moving away from a model based solely on producing liters of paint. Successful companies in this sector will sell not just paints and coatings, but also their key attributes, such as protection, color, etc., as a service," noted Balmer. "In making this transformation, companies will be able to identify new potential customers who could also benefit from the data being generated."

Companies operating in this sector can also foster growth by:

Focusing on the digital transformation of one particular domain instead of transforming multiple domains at once.

Exploring the application of big data, AI and augmented reality in business operations to identify new business opportunities.

Global Digital Transformation in Paints and Coatings, 2019, is a part of Frost & Sullivan's Chemicals, Materials & Food Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

Related Expert's Opinion

We often forget how vital the chemical industry is to our well-being, safety and daily lives. The stigma around the issue of plastics waste in the environment often overshadows the progress the industry has made in becoming one of the more sustaina…

Advancements in the automobile industry have never failed to baffle us. However, no car would ever hit the market without the finishing touch of coatings. The additives provide automobiles a unique appearance, which makes them desirable for custome…

The outbreak of COVID-19 continues to have a huge impact around the world.
Clearly, our priority is to keep our employees, their families and our partners safe and well. We’re closely monitoring the pandemic situation and taking all necessary…

The economics of plastic waste recycling are rapidly changing, pointing to a future where both incumbent and advanced technologies will be used, but decisive advantages for certain technologies will emerge in particular regions depending on waste str…

Results from the Q2 2019 USG Corporation + U.S. Chamber of Commerce Commercial Construction Index indicate that more than half of contractors are highly confident that the market will provide sufficient new business opportunities in the next 1…

Chemicals
Houston We Have Unbridled Optimism
• What does perpetual prosperity in petrochemicals have in common with Santa Claus and the Easter Bunny? You guessed it; these are three things that don’t actually exist. We are att…

Chemicals
Lithium Landscape; Who’s Who in Lithium?
• We introduce our inaugural roster of global lithium players. In this month’s edition of Lithium Landscape, we publish in the appendix our initial version of Who’…

Celanese Corporation (CE: Hold, $114 PT)
Filter Tow JV Goes Up in Smoke
• Europe kills Celanese’s planned filter tow JV with Blackstone. After the close on Monday, Hold-rated Celanese announced that it has abandoned its merger…

Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies. You can obtain detailed information about the use of cookies on our website by clicking on "More information”.